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Hyundai Motor to Build $270 Million Engine Plant in the U.S.

South Korea's Hyundai Motor said on Tuesday it would invest $270 million to build a new engine plant at its U.S. car manufacturing facility in Alabama to serve growing demand in the world's top auto market.

The plant, estimated to create about 520 jobs, will begin mass production from September 2008 and supply engines to the Alabama plant and a Georgia plant being built by its affiliate, Kia Motors, Hyundai said in a statement.

The Alabama facility currently produces Hyundai's Sonata sedan and its Santa Fe sports utility vehicle.

Hyundai and Kia, which produce about three quarters of their cars abroad, are expanding overseas production to shield themselves from a strong won and frequent labor disputes.